Record profits for HSBC

Global banking giant HSBC today published better-than-expected half yearly profits, boosted by growth in its European commercial operations and US con

15:09 02 August 2005

Global banking giant HSBC today published better-than-expected half yearly profits, boosted by growth in its European commercial operations and US consumer finance wing.

Profits at the UKs biggest bank by assets rose to 6 billion for the six months to the end of July, up by five per cent for the same period last year.

The results comfortably topped the range of analyst forecasts, driven by strong growth in financial services, which achieved profits of 5.47 billion, and business banking, which enjoyed a nine per cent rise in profits.

HSBC said that its UK market continued to be the worst for bad debt, although countermeasures that it has put in place are beginning to bite.

Chairman Sir John Bond said: "The first half was one of continued progress for HSBC."

Sir John singled out the banks performance in emerging markets, such as Brazil, Mexico and China, for particular praise.

Although HSBCs investment banking wing was among its poorest performers, the bank is investing heavily in the unit, to turn it into a global force to rival Citigroup and Morgan Stanley.